AAA Sides with Arizona Builder in Arbitration

Sep 29, 2020

Recently Attorneys William A. Nebeker and Omer David successfully defended an arbitration on behalf of a National Builder. The American Arbitration Association awarded Claimant Homeowners a small fraction of the total damages sought. The Arbitrator sided with KNCH’s client, finding that the National Builder did not breach the contract, and awarded the cost of repair submitted by KNCH’s expert.

The dispute arose in 2016 out of alleged construction defects within a home constructed in Chandler, Arizona. In 2017, after Administrative Proceeding under the Registrar of Contractors, the parties reached an agreement to settle the matter wherein repairs to the home were to be made to the satisfaction of an agreed upon construction expert. After initial repairs, the Homeowners sued in Maricopa County Superior Court for breach of contract. KNCH then successfully dismissed the matter from Superior Court, and the court ordered the parties to enter into binding Arbitration.

KNCH presented convincing evidence at arbitration, that the Homeowners were seeking repairs beyond the scope of the work defined within the parties’ settlement agreement. The arbitrator agreed that the Homeowners’ claimed damages, in the amount of $300,000, were excessive, and issued an award for the exact total suggested by KNCH’s expert. The arbitrator awarded the homeowners just slightly over ten percent of the total damages they sought.